KBank net profit rises 1.77% in 2016
Kasikornbank has reported a net profit of Bt40.17 billion in 2016, an increase of 1.77 per cent year on year mainly from a higher allowance for impairment loss on loans.
Predee Daochai, president of the KBank, said it had set aside a high allowance for loan loss provisions to be prepared for uncertainties due to the economic slowdown. As a result, its coverage ratio reached 130.92 per cent, versus 129.96 per cent in 2015.
The bank and its subsidiaries set aside an allowance of Bt33.75 billion, up by 27.96 per cent from Bt26.37 billion in the year before.
KBank, the country’s fourth-largest bank, reported gross non-performing loans of 3.32 per cent in 2016, up from 2.70 per cent in 2015.
Lending growth supported net interest income, for which the bank recorded growth of 5.5 per cent to Bt89.67 billion. Non-interest income increased slightly, by 1.96 per cent, to Bt63.72 billion mainly on a significant drop in net income from insurance premiums.
According to its report to the Stock Exchange of Thailand, KBank’s outstanding loans grew by 5.45 per cent to Bt1.69 trillion last year and net interest margin stood at 3.52 per cent.
